138 / 160
NOTES TO THE FINANCIAL STATEMENTS
continued
for the year ended 30 June 2016
Hyprop Investments Limited
Group annual financial statements 2016
136
25.
Employee remuneration
Equity-settled share-based employee remuneration
On 1 January 2014, the group implemented a long-term employee incentive scheme, the conditional unit plan (CUP), which consists of two
components – performance shares and retention shares. Both the performance and retention components of the scheme
are settled with Hyprop shares.
The terms and conditions of the long-term employee incentive scheme were approved at the Hyprop annual general meeting on 5 December
2013.
25.1
Performance shares
In terms of the CUP, fully paid awards are made on an annual basis, comprising performance shares and retention shares.
The split between performance shares and retention shares is 70%:30% for all participants.
The performance conditions for the shares allocated as performance shares are as follows:
•
•
Growth in distribution per share relative to a peer group (weighting 40%)
•
•
Share price performance relative to a peer group (weighting 40%)
•
•
Strategic component, which will be determined by the remuneration committee in line with the prevailing circumstance and projects at
the time of the award (weighting 20%).
Each of the performance conditions will be measured over a three-year performance period. Participants must be employed until the end of
the vesting period to be eligible for the award.
25.2 Retention shares
Retention shares vest after five years, provided the participant is still employed by the group.
25.3 Reconciliation of shares allocated in terms of the CUP
Number of
performance
shares
Number of
retention
shares
Unvested at 30 June 2014
107 563
46 100
Granted
110 422
47 324
Forfeited
(3 368)
(1 443)
Unvested at 30 June 2015
214 617
91 981
Granted
78 282
33 549
Forfeited
(7 955)
(3 757)
Vested
(1 356)
(234)
Unvested at 30 June 2016
283 588
121 539